Possible Support And Resistance Spots For Microsoft, Apple And Even Amazon

Amazon, Apple and Microsoft: these are the monster NASDAQ stocks with the most highly publicized and highly recognizable Chief Executive Officers -- and with the most eager day-to-day coverage from the business and investment media. What kind of year was 2018 for these former darlings of Wall Street?

What are the most likely levels that they might reach if a sustainable bounce is just ahead? What are the most likely support levels if the deep descent continues for weeks and months? By studying those spots where buying showed up en mass and where the fiercest selling hit the tape, it may be possible to locate where support and resistance may be encountered next time around.

Here's the daily price chart for Microsoft:

Microsoft daily price chart.

stockcharts.com

The bounce off of the Christmas Eve lows for Bill Gates company is now above the previous support level at about 99.5. The fact that it has closed higher indicates strength, perhaps enough to take it up to the next resistance level at 113 where selling hit in late November.

The late April low just above 89 might provide support the stock if another bout of selling blasts the market -- that's where the previous significant buying showed up in late April of this year.

Here's the Microsoft weekly price chart:

Microsoft weekly price chart.

stockcharts.com

This longer-term picture of the stock is more encouraging. The price remains above the uptrend line and above the Ichimoku cloud, both indications of persistent strength. The next significant level of resistance looks like October, 2018 just above 115.

If Microsoft were to drop below both the long-term uptrend line and the Ichimoku cloud, then the next most significant level of support -- where buyers emerged previously -- is down at the 55 area.

This is the Apple daily price chart:

Apple daily price chart.

stockcharts.com

You can see how dramatic and profound is the selling from the October, 2018 peak to the December, 2018 low. The stock has taken out the April, 2018 low -- where buying kicked in previously -- at just below 150.

If Tim Cook's business can rally from here, the next spot for resistance is 185, the December high that filled the down gap left over from November. The downward angle of the Ichimoku cloud is wicked.

Here is the weekly Apple price chart:

Apple weekly price chart.

stockcharts.com

The price drop in the 4th quarter below both the uptrend line and the Ichimoku cloud is a convincing reversal of the previous trend. On the possibly positive side, this price is near the previous significant buying level from the summer of 2017. Should that level be taken out, the next support area is all the way down near 95 from mid-2015.

This is the daily price chart for Amazon:

Amazon daily price chart.

stockcharts.com

From 2050 in September to 1325 in December is a remarkable drop. The fact that the December low price is lower than the April low -- the previous level for significant buying -- cannot be good news for bulls. The Jeff Bezos creation is now bouncing off this level and the next spot where big selling came in is up at about 1775.

Here's the Amazon weekly price chart:

Amazon weekly price chart.

stockcharts.com

It seems to have caught the bottom of the up trending Ichimoku cloud and bounced. From this standpoint, the chart remains bullish in that the price remains above both the cloud and the longer-term up trend line. If Amazon can sustain a rally -- that is, keep going beyond just a bounce -- the all time high of 2050 from September, 2018 is the spot where sellers came in last time around and, thus, resistance.

I do not hold positions in these investments. No recommendations are made one way or the other. If you're an investor, you'd want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.